WESTLB, the German bank, is pulling out of venture capital once and for all as it prepares to sell its last remaining private equity investment subsidiary.
West Private Equity, best known for its previous ownership of Southern Cross, the care home chain now owned by Blackstone, is set to be spun off from its parent with a new name next month.
The disposal will mark the final retreat from private investment eight years after WestLB hired Robin Saunders, a star banker from Deutsche Bank, to spearhead a multibillion-dollar push into the market.
Ms Saunders, who was once signing cheques for hundreds of millions of dollars to finance businesses such as Bhs, Formula One and boxclever, the television rentals business, left WestLB two years ago.
Her departure followed the closure of the principal finance unit she headed, stemming from a €650 million loss on a loan made to boxclever.
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WestLB sold Mid Kent Water, its last remaining principal finance investment, in February last year.
West Private Equity, which is headed by Philip Buscombe, chief executive, and manages a €300 million fund, will be spun off as an independent entity through a management buyout.
West Private Equity, set up in 1999, is raising its first independent fund. Contributions to previous investment funds have been fairly evenly split between WestLB and so-called limited partners such as banks and pension funds.
WestLB is also expected to sell its stake in the firm’s last investment fund to two mystery investors.